Given the difference between forward rate agreements and interest rate futures contracts, would you expect the FRA

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Given the difference between forward rate agreements and interest rate futures contracts, would you expect the FRA rate to equal the futures interest rate, for otherwise identical contracts? Explain your answer.

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 03:59 AM

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Given the difference between forward rate agreements and interest rate futures contracts, would you expect the FRA

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The FRA rate will not equal the futures interest r...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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